Curried Wealth Building
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February 20, 2011
Issue 136  -  Things That Just Can't Be
 
 
This week I'm going to write about the many abnormal things happening in United States and around the world.  This list seems to grow each and every week as the exception becomes the rule.  Black is white and things are likely to get worse.  Now for a list of things that can't be...but are:
 
1.  Universal Coverage That's Not Universal
 
First up, check out this link from the Department of Health and Human Services here.
 
What that link shows is the over SEVEN HUNDRED waivers to the new Obama health care plan.  Believe it not, the current list is now over 900.  If you look at the list you'll see a very unusual list of organizations which don't have to participate in the plan including Waffle House, International Brotherhood of Electrical Workers, Pepsico Co., Sunwest Fruit Company, American Eagle Outfitters, Excellus Health Plan, and Taylor Farms.  I just can't imagine how there are so many health insurance companies and unions that will be adversely affected while other organizations won't.  The list would seem to exclude almost anyone.  The waivers cover over 2 MILLION workers so the filter isn't too tight.  This is just a giant scam to enact universal health care except for friends of the president.  This is going to end up in the supreme court.
 
2.  Perfert Traders
 
JP Morgan Says It Had A Perfect Trading Second Half In 2010, Lost Money On Just 8 Days In 2010, Made Money On 96.9% Of Trading Days
Submitted by Tyler Durdenon 02/15/2011
 
For those wondering why nobody wants to trade ever again on what are now purely legalized fraud markets (and thank god Ze Germans are dumb enough to buy them at any price), here is the reason:
  • JPMORGAN RACKS UP THREE PERFECT TRADING QUARTERS IN 2010
  • JPMORGAN TRADERS HAD PERFECT SECOND HALF, BANK SAYS
  • JPMORGAN TRADERS LOST MONEY 8 DAYS IN 2010, DOWN FROM 42 IN '09

In other words, of 260 trading days in 2010, the firm lost money on 8, or 3.1%. In yet other words, the firm made money 96.9% of the time. We'll repeat that: JPM made money 96.9% of the time.

We expect the 10-Q will confirm this data which was discussed during the firm's investor presentation. And if Bank of America, and its Calcutta-grade trading desk repeats the same trading perfection it had in Q3, then it's really over.

Now this story from ZeroHedge is a prime example of the corruption that one wouldn't think possible in a free, law abiding country.  How, pray tell, can someone be right 97% of the time?  My wife's not even right that much.  What this reveals is corruption, collusion, inside information and fraud.  NO ONE can trade like that!  It can't happen...yet it did.  The next time someone argues that we have free and open markets, ask them about JPMorgan's near perfect trading.
 
3.  Budget's Meant to Save the System, Yet be Unsustainable
 
Here's a video of Treasury Secretary Geithner being questioned by Jeff Sessions:
 
 
So the HEAD monetary guy in Obama's White House is saying that his Boss's plan is "unsustainable."  That's incredible.  Maybe more incredible is his excuse of, "what's the alternative?"   Geez Louise, how about a balanced budget??????  How's that for a wacky idea, Secretary Geithner?
 
4.  Parabolic Debt Growth
 
 
This chart is turning into a cartoon.  Under Bush 43, it turned into a hockey stick but now Obama has it shooting straight up like a rocket.  Maybe we can put Wiley Coyote on there?  Seriously, does anyone see a PROBLEM here???  Even with our new "cuts", this will still be skyrocketing.  This WILL end in tears.
 
5.  World's Superpower Mocks Buying Gold, While Heir to Throne Buys
 

Chinese Buy As Much Gold In January As They Did In Half Of 2010

The bank expects to sell 5 billion yuan worth of gold linked deposits this year, after having sold 1 billion yuan worth of the deposits in 2010, according to Zhou Ming, the deputy head of the ICBC's precious metals department.

With Chinese CPI at 4.9% it comes as no surprise consumer are rushing to buy the precious metal to hedge against inflation. Gold prices in Asia steadied in overnight trading while gold futures rose on the Comex in New York. The metal has been trading lower on the market today.

The ICBC teamed with the World Gold Council to launch China's first gold gift investment bar on Tuesday. The Only Gold Gift Bar comes in 10, 20, 50, 100 and 1000 gram denominations and the word "fu" (joy) engraved on the bar. Ming said in a statement on Tuesday:
 
"We are working closely with the World Gold Council to provide a variety of physical or physical backed gold solutions for our customers. Last year we sold more than 15 tonnes of bars and coins and we have a strong start in January with almost 5 tonnes of sales."

With 1,161.9 tons, China has the world's sixth largest gold reserve valued at $50.19 billion. The country is the world's largest gold producer, yet it imported 209 tons of gold last year.

 

Here's the problem.  China, you know the country with over a billion people, is buying gold hand over fist.  The United States, current superpower of the world openly ridicules its value and those who buy it.  This even though the constitution is quite clear:
 
From article 10:  "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;..."
 
So the only things that are ALLOWED to be money are taxed by our government as income, which keeps ownership down, while fake paper metals such as SLV and GLD are taxed at lower rates.  Not withstanding the fact that they shouldn't be taxed at all, why is our government discouraging us from owning constitutional money?  You might be fooled into not buying, but the Chinese are not.  I'd follow their lead.
 
6.  Gold Bars Filled with Tungsten
 
There have been rumors of this for months.  How about a littIe proof?  Ok, here you go:
 
 
There are more and more rumors circulating that there a lot of these bars circulating.  This would mean that the central banks could be involved in a huge ponzi scheme aimed at maintaining the status quo of fiat (paper) money.  There was even one outrageous rumor that MOST of the gold in the central banks vaults is tungsten filled.  I don't know what to believe, but I highly doubt that the bar in this video is the only one of its kind. 
 
7.  Governments Telling Private Pension Funds to Sell Gold
 
 
 
 Pension Fund Forced to Sell Gold
 

THE HAGUE, 11/02/11 - The Dutch central bank (DNB) is demanding that a pension fund wind down its investments in gold substantially.

The pension fund for Glassmakers has put 13 percent of its assets in gold, and DNB says it has to cut this to below 3 percent. The supervisory body has given it a so-called 'directive' to do so following the fund's earlier refusal to wind down the investment in gold.

The directive has emerged from a ruling by a district court, which this week found against an appeal that the fund made against the measure. The gold must now be sold within two months.

DNB does not want to say that it sees gold as the next financial bubble. It does however say that the fund does not comply with the 'prudent person' rule, to which funds must adhere in the interests of their participants, with the its concentration of investments in gold. Pension funds on average invest 2.7 percent in commodities.

The fund invests for 1,142 current and former employees of companies including O-I Manufacturing Netherlands and O-I Sales and Distribution Netherlands. Pension consultant Mercer is the fund's advisor.

 
 
So a pension fund in the Netherlands, has done VERY well with their gold investment and their government thinks that they need to sell some because it's too "risky."  How ludicrous is that???  You just can't make this up.  I wonder if they made them sell tech stocks in 2000?  Doubt it.
 
8.  Gold Coins That Rust
 
 
Hmmmm... gold coins, less than a year old, with marks?  That's odd don't you think?  I'm starting to think this gold suppression scheme is real huh?  Seriously, this is rather scary and makes me glad I bought my physical gold 5 years ago.  Who knows what's really in currently produced coins?  I might suggest you buy older coins if you can get them.  Kruggerands would probably be best.  I do think that smaller items are the least likely to be counterfeit.
 
Positions
 
Goro  (closed at $24.63, down $0.21, average price paid, $6.10) 
 
Goro had a press release this week that had largely good news but a little bad too.  It seems that they were unable to produce much gold in the 4th quarter.  However, they have pushed the start of the underground ore processing forward and should begin processing it in the next 2 months.  This is the money ore that is worth over $1,000 a ton.  Once this ore is running, there should be no shortage of money.  The stock price actually took the news rather well with a relatively flat stock price.  Use this holding pattern to accumulate if you were looking to add or make a first purchase.
 
They have also updated their pictures of the mine progress.  The press release and photos can be seen at www.goldresourcecorp.com.
 
Mexus Gold  (closed $.23, down $0.01, average price paid, $.20) 
 
Stocks    (Current status, Long, 100%, 1/3 International, 1/3 small cap, 1/3 large cap)
 
Physical Gold  (Closed $1,389,  up $33,  average price paid $395)
 
Physical Silver  (Closed $32.66,  up $2.75,  average price paid $5.31)
 
 
This week's video features a very clever dog, have a great week!